The private equity index increased by 3.5% in 2010-Q2, with a year-over-year rise of 43.1% and a 72% increase from 2009-Q1. Global direct equity investment reached a record $40.1 billion in the same quarter, but the index remains below previous highs due to slow fundraising and M&A activities. Private equity-backed M&A activity hit $70.5 billion in 2010-Q3, accounting for 11.3% of global M&A, which is significantly more than 2009-Q1 but still short of 2007 levels.

1. The Private Equity Index increased by 3.5% from 2010-Q2
175
150.83
155
135
115
104.33
95
71.71
75
60.39
55
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 The Private Equity Index rose 43.1% year-over-year and is up by 72% from the 2009-Q1.
 Global direct equity investment reached a record $40.1 billion during the quarter.
 The Index remained below previous highs because of muted fundraising and M&A
activity.
Source: Private Equity Growth Capital Council

2. Global direct equity investment increased by 10.2%
45,000
$40,109
40,000
35,000
$32,417
30,000
25,000
($ Mil.)
20,000
$16,023
$17,862
15,000
10,000
5,000 $7,033
$4,525
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Thomson Reuters; buyout and growth capital

3. Value of PE-backed M&A increased by 55.3% in Q3
Deal Value ($ Mil.) PE-backed M&A as a % of
total M&A
$350,000 $318,864 30.0%
(23.4%)
$300,000
$86,212 25.0%
(21.8%)
$250,000
20.0%
$200,000
$41,468
(13.9%) 15.0%
$70,508
$150,000 (11.3%)
10.0%
$100,000
$16,268
(3.1%) 5.0%
$50,000
$0 0.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 PE-Backed M&A Activity reached $70.5 billion during 2010-Q3 (bars; left axis) and
represented 11.3% of all global M&A activity (blue line; right axis) in the quarter.
 This is four times the total deal volume of 2009-Q1, but still far from 2007 peak.
Note: Deal value includes net debt of Target
Source: Thomson Reuters; financial sponsor-backed